24th March 2010 BUDGET PROPOSALS
AND CHANGES FOR 2010/2011 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

9.1 From 2010/2011 the trust tax rate is increased from 40% to 50% and the dividend trust rate increased from 32.5% to 42.5%.

9.2 The Capital Gains Tax rate for all trusts decreased to 18% from 6th April 2008, in line with the new CGT regime introduced at that time.

9.3 Income distributions are received with the benefit of a tax deduction of 50%. Any difference between each beneficiary’s top rate and 50% is recoverable.

9.4 The standard rate band applying to the first £1,000 of income for all trusts liable to the trust tax rate remains the same.